Can2 Termik unit to develop $400 million oil project in Venezuela

Florida-headquartered Denarius Holding Group, whose ?main shareholder is Turkey's energy ?firm Can2 Termik, has reached a ?20-year agreement to operate ?the Cema ?oilfield ?in Venezuela under a $400 million project, the company said in a release on Wednesday.

As part of a sweeping?energy reform, foreign oil producers are moving existing joint ventures to Venezuela and transferring production sharing 'contracts. Meanwhile, new entrants commit to development projects in the OPEC nation encouraged by a $100 billion reconstruction plan for the industry.

Denarius’ project includes a partnership with Minerosol Group to?develop the oilfield located in eastern Anzoategui.

Denarius stated in the release that the project could potentially develop up to 100 million barrels recoverable oil and is expected support the rehabilitation of "mature oilfield Infrastructure, production optimization, and well interventions."

Cema produces approximately 400 barrels of crude oil per day. Denarius aims to achieve 9,900 bpd by rehabilitating the fields. Venezuela's total oil production is around 1.25 million barrels per day.

In a press release, Zehra Zeynep, Denarius Vice President, stated that the U.S. regulatory structure for Venezuela "provides investors with the clarity they need."

(source: Reuters)